Morning News Call - India, December 15

Reuters Staff

7 Min Read

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FACTORS TO WATCH
9:30 am: Junior Aviation Minister Jayant Sinha, Info Edge India Executive
Vice Chairman Sanjeev Bhikchandani, Bharti Enterprises Chairman Sunil Bharti
Mittal, Agriculture Secretary Shobhana Pattayanayak at TieCon event in New
Delhi.
11:00 am: Winter session of parliament starts in New Delhi.
5:30 pm: Pre-budget meeting of banks and financial institutions in New
Delhi.
LIVECHAT – QUIZ EAST
The first of our Friday quizzes focuses on Asia and the week's top news. Tests
your wits and googling speed at 11:00 am IST. To join the conversation, click on
the link: here
INDIA TOP NEWS
• Alphabet's X sells new wireless internet tech to Indian state
Alphabet Inc's X research division said on Thursday that India's Andhra Pradesh
state government would buy its newly developed technology that has the potential
to provide high-speed wireless internet to millions of people without laying
cable.
• Indian tycoon's extradition hearing told of abuse of UK "Chennai Six"
One of the "Chennai Six" group of ex-British soldiers jailed in India was
dragged to a psychiatric hospital and force-fed anti-psychotic tablets during
his time in jail, a London court considering whether to extradite Indian tycoon
Vijay Mallya was told on Thursday.
• India PM Modi's party seen sweeping state polls in popularity boost
Indian Prime Minister Narendra Modi's ruling group will sweep an election in his
home state of Gujarat, surveys showed on Thursday, shaking off the most serious
challenge yet from a combined opposition.
• India's SEBI chairman says banks should disclose corporate defaults
Securities and Exchange Board of India Chairman Ajay Tyagi said on Thursday
banks should disclose defaults in corporate loans, similar to the system in
place for corporate bonds, saying it was an issue that regulators would need to
address.
• Tata Group, GE partner to make LEAP engine components in India
Steel-to-software conglomerate Tata Group and General Electric Co entered into a
partnership in November to manufacture components for engine-maker CFM
International in India, the two companies said in a statement on Thursday.
• India's top court allows Vodafone to begin second arbitration in $2 bln
tax dispute
India's top court on Thursday allowed Britain's Vodafone to initiate a second
arbitration process under an India-UK investment pact over a long-running $2
billion-plus tax dispute with New Delhi.
• In-flight sexual assaults often unreported; airlines need to step up
When a 17-year-old Bollywood actress took to social media this week alleging she
was sexually assaulted on an airplane, she appeared to catch the airline
industry off-guard.
GLOBAL TOP NEWS
• U.S. regulators ditch net neutrality rules as legal battles loom
The U.S. Federal Communications Commission voted along party lines on Thursday
to repeal landmark 2015 rules aimed at ensuring a free and open internet,
setting up a court fight over a move that could recast the digital landscape.
• Disney buying Fox film, TV units for $52 billion in digital push
Walt Disney Co has struck a deal to buy film, television and international
businesses from Rupert Murdoch's Twenty-First Century Fox Inc for $52.4 billion
in stock, giving the world's largest entertainment company an arsenal of shows
and movies to combat growing digital rivals Netflix Inc and Amazon.com Inc.
• Japan's big manufacturers' mood hits 11-year high - tankan
Big Japanese manufacturers' business confidence improved for a fifth straight
quarter in the three months to December to hit a 11-year high, a central bank
survey showed, a sign the economy is gathering momentum from robust exports and
booming corporate profits.
LOCAL MARKETS OUTLOOK
(As reported by NewsRise)
The SGX Nifty Futures was at 10,352.00, trading up 0.62 percent from its
previous close.
Indian government bonds are likely to trade higher after exit polls
predicted that Prime Minister Narendra Modi’s Bharatiya Janata Party would
comfortably win Gujarat state elections. The yield on the benchmark 6.79 percent
bond maturing in 2027 is likely to trade in a 7.09 percent-7.15 percent band.
The Indian rupee will likely edge higher against the dollar, after exit
polls showed Prime Minister Narendra Modi’s Bharatiya Janata Party winning
Gujarat and Himachal Pradesh state elections, boosting investor sentiment.
GLOBAL MARKETS
• Major U.S. stock indexes fell on Thursday, with the S&P 500 down the most
in a month, as investor worries over potential roadblocks to the Republicans'
tax overhaul more than offset optimism over strong retail sales data.
• Asian shares edged higher, on track for weekly gains, though sentiment was
kept in check by Wall Street's weakness on concerns about the progress of U.S.
tax reform.
• The dollar was on the defensive after wrangling over a bill to change the
U.S. tax code dented confidence, while the euro sagged after the European
Central Bank signalled it would maintain stimulus for as long as needed.
• The gap between U.S. shorter-dated and longer-dated Treasury yields shrank
on Thursday as surprisingly strong data on retail sales in November supported
the view the Federal Reserve would raise interest rates further to keep the
economy from overheating.
• Oil markets were stable as the Forties pipeline outage in the North Sea
and the ongoing OPEC-led production cuts supported prices, while rising output
from the United States kept crude from rising further.
• Gold prices were steady, poised for their first weekly gain in four, as
the dollar sagged on concerns about the progress of U.S. tax reform.
CLOSE FII INVESTMENTS EQUITIES DEBT
PNDF spot 64.28/64.31 December 14 $361.01 mln $71.50 mln
10-yr bond yields 7.18 pct Month-to-date -$463.14 mln $233.64 mln
Year-to-date $8.23 bln $25.97 bln
For additional data:
India govt bond market volumes
Stock market reports
Non-deliverable forwards data
Corporate debt stories [IN CORPD]
Local market closing/intraday levels [IN SNAPSHOT]
Monthly inflows [INFLOWS RTRS TABLE IN]
($1 = 64.3300 Indian rupees)